Iris Energy Limited (NASDAQ: IREN) ("Iris Energy" or "the
Company"), a leading owner and operator of institutional-grade,
highly efficient proprietary Bitcoin mining data centers powered by
100% renewable energy, today published a monthly investor update
for August 2023, containing its results from operations as well as
business updates.
Key Highlights1
Key metrics2 |
Sep-23 |
Average operating hashrate (PH/s) |
5,554 |
Bitcoin mined |
390 |
Mining revenue (US$’000) |
10,278 |
Electricity costs (US$’000)3 |
5,354 |
Revenue per Bitcoin (US$) |
26,331 |
Electricity costs per Bitcoin (US$) |
13,717 |
- Low-cost power, primed for
significant growth
- 1.4c power at
Childress since inception4
- 30 EH/s Bitcoin
mining program5
-
Next-gen compute / generative AI
- Childress
construction (Phase 1, first 100MW)
- Concrete
foundations for second and third data centers complete
- Primary steel
structure for second data center complete
- Upcoming
conferences
- October 16: AFR
Cryptocurrency Summit, Sydney
- October 30-31: AIM
Summit, Dubai
Corporate update
Full year FY23 results
On September 13, Iris Energy reported financial
results for the full year ended June 30, 2023.
The earnings webcast and the Company’s latest
investor presentation are available on the Company’s website here:
https://investors.irisenergy.co/events-and-presentations
Strategic highlights
-
Low-cost power at Childress (since inception)
-
2.0c power price6, $6.3k per Bitcoin mined7 (excluding 4CP)
-
1.4c power price4, $4.4k per Bitcoin mined7 (if including 4CP,
ineligible during 2023)
-
30 EH/s Bitcoin mining program
-
Single site expansion, ongoing delivery and construction
process
-
$626 million funding plan
-
$69m existing cash8
-
$57m ELOC capacity8
-
$500m shelf filing ($300m ATM + $200m other9)
-
Operating cashflow
- Next-gen
compute and generative AI
-
NVIDIA H100 GPUs on order
-
Initial delivery expected in the coming months
-
Customer conversations underway regarding cloud and colocation
services
AI Hardware & Edge AI Summit 2023
Iris Energy partnered with AI Hardware and
Systems and presented at the 6th Annual AI Hardware & Edge AI
Summit, September 12-14, 2023.
The Iris Energy team discussed the Company’s
next-generation data centers capable of powering Bitcoin, AI and
beyond:
-
760MW of power capacity
-
180MW data centers (operating)
-
80MW data centers (under construction)
-
500MW additional power and land
-
Optimized for power-dense compute
-
Powered by 100% renewable energy10
Canal Flats update (0.8 EH/s, 30MW
capacity) – BC, Canada
Canal Flats has been powered by 100% renewable
energy since inception10.
The project achieved average monthly operating
hashrate of 835 PH/s in September compared to 823 PH/s last
month.
Mackenzie update (2.6 EH/s, 80MW
capacity) – BC, Canada
Mackenzie has been powered by 100% renewable
energy since inception10.
The project achieved average monthly operating
hashrate of 2,607 PH/s in September compared to 2,595 PH/s last
month.
Prince George update (1.6 EH/s, 50MW
capacity) – BC, Canada
Prince George has been powered by 100% renewable
energy since inception10.
The project achieved average monthly operating
hashrate of 1,617 PH/s in September compared to 1,615 PH/s last
month.
Childress update (0.6 EH/s, 20MW
operating / 80MW under construction) – Texas, USA
Childress has been powered by 100% renewable
energy since inception via the purchase of RECs.
The project achieved average monthly operating
hashrate of 495 PH/s in September compared to 461 PH/s last
month.
Construction of the remaining 80MW (4 x 20MW
data centers) for Phase 1 (first 100MW) remains on track with mass
grading civil works, concrete foundations for the second and third
data centers, and primary steel structure for the second data
center, all complete.
The Company’s ownership of key infrastructure
also provides a rapid and efficient growth pathway, with 600MW of
total power capacity available at the site.
Community engagement
The Company sponsored and participated in the
Prince George Community Foundation’s annual golf tournament during
the month.
2023 Community Grants Program
Iris Energy is pleased to provide an update on
its Community Grants Programs:
- Mackenzie
- C$94,000 awarded to
11 non-profit organizations
- Recipients include
St. Peter’s Pantry (local food bank), Mackenzie Public Library,
College of New Caledonia, Mackenzie and Area Radio Society and
Mackenzie Search and Rescue Society
- Prince George
- C$59,000 awarded to
10 non-profit organizations
- Recipients include
Lheidli T’enneh Nation (community), Prince George CRC Community
Gardens, Spinal Cord Injury BC and Northern Adapted Sports
Association
- Childress
- Committee currently
reviewing 18 applications
- Successful
recipients expected to be announced in the coming months
Future development sites
Development works continued across additional
sites in Canada, the USA and Asia-Pacific, which have the potential
to support up to an additional >1GW of aggregate capacity that
can power growth beyond the Company’s 760MW of announced
capacity.
Operating and financial results
Daily average operating hashrate chart is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/71d7a730-8f6a-444b-bf8b-d18aba17798c
Technical commentary
The Company’s average operating hashrate was
marginally higher this month (5,554 PH/s vs. 5,493 PH/s in August).
The decrease in Bitcoin mined (390 vs. 410 in August) was primarily
attributable to an increase in network difficulty and one less day
during the month. The increase in electricity costs per Bitcoin
($13.7k vs. $10.6k in August) was primarily attributable to lower
energy trading proceeds at Childress, however this resulted in a
higher operating hashrate for the month.
Operating |
Jul-23 |
Aug-23 |
Sep-23 |
Renewable energy usage
(MW)10,11 |
170 |
168 |
168 |
Avg operating hashrate (PH/s) |
5,562 |
5,493 |
5,554 |
Financial (unaudited)2 |
Jul-23 |
Aug-23 |
Sep-23 |
Bitcoin mined |
423 |
410 |
390 |
Mining revenue (US$’000) |
12,660 |
11,459 |
10,278 |
Electricity costs (US$’000)3 |
6,552 |
4,342 |
5,354 |
Revenue per Bitcoin (US$) |
29,939 |
27,937 |
26,331 |
Electricity costs per Bitcoin (US$) |
15,494 |
10,586 |
13,717 |
Site |
Capacity (MW) |
Capacity(EH/s)12 |
Timing |
Status |
Canal Flats (BC, Canada) |
30 |
0.8 |
Complete |
Operating |
Mackenzie (BC, Canada) |
80 |
2.6 |
Complete |
Operating |
Prince George (BC, Canada) |
50 |
1.6 |
Complete |
Operating |
Total (BC, Canada) |
160 |
5.0 |
|
|
Childress (Texas, USA) |
20 |
0.6 |
Complete |
Operating |
Total Operating (Canada & USA) |
180 |
5.6 |
|
|
Childress (Texas, USA) |
80 |
3.513 |
Early 202414 |
Under construction |
Total (Canada & USA) |
260 |
9.1 |
|
|
About Iris Energy
Iris Energy is a sustainable Bitcoin mining
company that supports the decarbonization of energy markets and the
global Bitcoin network.
- 100% renewables:
Iris Energy targets sites with low-cost, under-utilized renewable
energy, and supports local communities
- Long-term security
over infrastructure, land and power supply: Iris Energy builds,
owns and operates its electrical infrastructure and proprietary
data centers, providing long-term security and operational control
over its assets
- Seasoned management
team: Iris Energy’s team has an impressive track record of success
across energy, infrastructure, renewables, finance, digital assets
and data centers with cumulative experience in delivering >$25bn
in energy and infrastructure projects globally
Forward-Looking Statements
This investor update includes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally relate to
future events or Iris Energy’s future financial or operating
performance. For example, forward-looking statements include but
are not limited to the Company’s business strategy, expected
operational and financial results, and expected increase in power
capacity and hashrate. In some cases, you can identify
forward-looking statements by terminology such as “anticipate,”
“believe,” “may,” “can,” “should,” “could,” “might,” “plan,”
“possible,” “project,” “strive,” “budget,” “forecast,” “expect,”
“intend,” “target”, “will,” “estimate,” “predict,” “potential,”
“continue,” “scheduled” or the negatives of these terms or
variations of them or similar terminology, but the absence of these
words does not mean that statement is not forward-looking. Such
forward-looking statements are subject to risks, uncertainties, and
other factors which could cause actual results to differ materially
from those expressed or implied by such forward-looking statements.
In addition, any statements or information that refer to
expectations, beliefs, plans, projections, objectives, performance
or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking.
These forward-looking statements are based on
management’s current expectations and beliefs. These statements are
neither promises nor guarantees, but involve known and unknown
risks, uncertainties and other important factors that may cause
Iris Energy’s actual results, performance or achievements to be
materially different from any future results performance or
achievements expressed or implied by the forward-looking
statements, including, but not limited to: Bitcoin price and
foreign currency exchange rate fluctuations; Iris Energy’s ability
to obtain additional capital on commercially reasonable terms and
in a timely manner to meet our capital needs and facilitate its
expansion plans; the terms of any future financing or any
refinancing, restructuring or modification to the terms of any
future financing, which could require Iris Energy to comply with
onerous covenants or restrictions, and its ability to service its
debt obligations; Iris Energy’s ability to successfully execute on
its growth strategies and operating plans, including its ability to
continue to develop its existing data center sites and to increase
its diversification into the market for potential HPC solutions;
Iris Energy’s limited experience with respect to new markets it has
entered or may seek to enter, including the market for HPC
solutions; expectations with respect to the ongoing profitability,
viability, operability, security, popularity and public perceptions
of the Bitcoin network; expectations with respect to the
profitability, viability, operability, security, popularity and
public perceptions of any potential HPC solutions that Iris Energy
may offer in the future; Iris Energy’s ability to secure customers
on commercially reasonable terms or at all, particularly as it
relates to its potential expansion into HPC solutions; Iris
Energy’s ability to manage counterparty risk (including credit
risk) associated with potential customers and other counterparties;
Iris Energy’s ability to secure renewable energy and renewable
energy certificates, power capacity, facilities and sites on
commercially reasonable terms or at all; the risk that
counterparties may terminate, default on or underperform their
contractual obligations; Bitcoin network hashrate fluctuations;
delays associated with, or failure to obtain or complete,
permitting approvals, grid connections and other development
activities customary for greenfield or brownfield infrastructure
projects; our reliance on third party mining pools, exchanges,
banks, insurance providers and our ability to maintain
relationships with such parties; expectations regarding
availability and pricing of electricity; Iris Energy’s
participation and ability to successfully participate in demand
response products and services and other load management programs
run, operated or offered by electricity network operators,
regulators or electricity market operators; the availability,
reliability and cost of electricity supply, hardware and electrical
and data center infrastructure, including with respect to any
electricity outages and any laws and regulations that may restrict
the electricity supply available to Iris Energy; any variance
between the actual operating performance of Iris Energy’s hardware
achieved compared to the nameplate performance including hashrate;
Iris Energy’s ability to curtail its electricity consumption and/or
monetize electricity depending on market conditions, including
changes in Bitcoin mining economics and prevailing electricity
prices; actions undertaken by electricity network and market
operators, regulators, governments or communities in the regions in
which Iris Energy operates; the availability, suitability,
reliability and cost of internet connections at Iris Energy’s
facilities; Iris Energy’s ability to secure additional hardware,
including hardware for Bitcoin mining and potential HPC solutions
it may offer, on commercially reasonable terms or at all, and any
delays or reductions in the supply of such hardware or increases in
the cost of procuring such hardware; expectations with respect to
the useful life and obsolescence of hardware (including hardware
for Bitcoin mining as well as hardware for other applications,
including HPC solutions); delays, increases in costs or reductions
in the supply of equipment used in Iris Energy’s operations; Iris
Energy’s ability to operate in an evolving regulatory environment;
Iris Energy’s ability to successfully operate and maintain its
property and infrastructure; reliability and performance of Iris
Energy’s infrastructure compared to expectations; malicious attacks
on Iris Energy’s property, infrastructure or IT systems; Iris
Energy’s ability to maintain in good standing the operating and
other permits and licenses required for its operations and
business; Iris Energy ability to obtain, maintain, protect and
enforce its intellectual property rights and other confidential
information; whether the secular trends Iris Energy expects to
drive growth in its business materialize to the degree it expects
them to, or at all; the occurrence of any environmental, health and
safety incidents at Iris Energy’s sites; any material costs
relating to environmental, health and safety requirements or
liabilities; damage to our property and infrastructure and the risk
that any insurance Iris Energy maintains may not fully cover all
potential exposures; ongoing securities litigation and proceedings
relating to the default by two of Iris Energy’s wholly-owned
special purpose vehicles under limited recourse equipment financing
facilities; ongoing securities litigation relating in part to the
default; and any future litigation, claims and/or regulatory
investigations, and the costs, expenses, use of resources,
diversion of management time and efforts, liability and damages
that may result therefrom; any laws, regulations and ethical
standards that may relate to Iris Energy’s business, including
those that relate to Bitcoin and the Bitcoin mining industry and
those that relate to any other solutions we may offer (such as
potential HPC solutions), including regulations related to data
privacy, cybersecurity and the storage, use or processing of
information; any intellectual property infringement and product
liability claims; our ability to attract, motivate and retain
senior management and qualified employees; increased risks to our
global operations including, but not limited to, political
instability, acts of terrorism, theft and vandalism, cyberattacks
and other cybersecurity incidents and unexpected regulatory and
economic sanctions changes, among other things; climate change and
natural and man-made disasters that may materially adversely affect
our business, financial condition and results of operations; the
ongoing effects of COVID-19 or any other outbreak of an infectious
disease and any governmental or industry measures taken in
response; our ability to remain competitive in dynamic and rapidly
evolving industries; damage to our brand and reputation; and other
important factors discussed under the caption “Risk Factors” in
Iris Energy’s annual report on Form 20-F filed with the SEC on
September 13, 2023 as such factors may be updated from time to time
in its other filings with the SEC, accessible on the SEC’s website
at www.sec.gov and the Investor Relations section of Iris Energy’s
website at https://investors.irisenergy.co.
These and other important factors could cause
actual results to differ materially from those indicated by the
forward-looking statements made in this investor update. Any
forward-looking statement that Iris Energy makes in this investor
update speaks only as of the date of such statement. Except as
required by law, Iris Energy disclaims any obligation to update or
revise, or to publicly announce any update or revision to, any of
the forward-looking statements, whether as a result of new
information, future events or otherwise.
Preliminary Financial
Information
The preliminary financial information for the
month of September 2023 included in this investor update is not
subject to the same closing procedures as our unaudited quarterly
financial results and has not been reviewed by our independent
registered public accounting firm. The preliminary financial
information included in this investor update does not represent a
comprehensive statement of our financial results or financial
position and should not be viewed as a substitute for unaudited
financial statements prepared in accordance with International
Financial Reporting Standards. Accordingly, you should not place
undue reliance on the preliminary financial information included in
this investor update.
Contacts
MediaJon SnowballDomestique+61 477 946 068
InvestorsLincoln TanIris Energy+61 407 423
395lincoln.tan@irisenergy.co
To keep updated on Iris Energy’s news releases and SEC filings,
please subscribe to email alerts at
https://investors.irisenergy.co/ir-resources/email-alerts.
________________________
1 All timing references in this investor update are to calendar
months, in each case unless otherwise specified.2 Bitcoin and
Bitcoin mined in this investor update are presented in accordance
with our revenue recognition policy which is determined on a
Bitcoin received basis (post deduction of mining pool fees as
applicable). Electricity costs exclude REC purchases.3 The
Company’s Childress site generated ~US$948k of power sales in
September (~36 Bitcoin equivalent), which represents unaudited
power credits (primarily driven by voluntary curtailment) under
hedge contracts (based on current meter data and ERCOT real-time
prices) and are reflected within the electricity costs. Figures are
based on current internal estimates and exclude REC purchases.4
Reflects average all-in power price achieved at Childress between
May 2023 and August 2023 (based on monthly electricity invoices
received as well as internal estimates). Excludes April 2023 as
this represented a partial period (reflecting initial ramp-up in
operations). Excludes costs of purchasing RECs. Includes basis
costs, ERCOT, retail and network fees, net of estimated power
credits. There is no guarantee similar power credits will be
achieved at Childress in the future (or at all). Includes
internally estimated value of current enrolment in ERCOT’s
Emergency Response Service program (“ERS”) for the period between
June 2023 and August 2023 (based on actual observed ERS clearing
prices during the period). Childress has not yet received any ERS
benefit and there is no guarantee it may receive any benefit (e.g.
due to unsuccessful participation) and ERCOT has not confirmed the
value of the ERS benefit under the current enrolment (if any).
Includes internally estimated value from load reduction to reduce
four coincident peak (“4CP”) transmission network charges.
Childress is not eligible to receive the 4CP benefit in its first
calendar year of operations (2023), however it is currently
anticipated Childress may be eligible to receive the benefit from
the start of 2024. The internally estimated value of the benefit is
based on actual 4CP peak demand at Childress between June 2023 and
August 2023 and internally estimated 4CP peak demand for September
2023. Childress has not yet received any 4CP benefit and there is
no guarantee it will receive any benefit (e.g. due to unsuccessful
participation) and AEP has not confirmed the value of any 4CP
benefit to date (if any). The actual all-in-power price achieved at
Childress may differ materially in the future, including due to
energy market volatility and seasonal factors (noting the site has
only operated since April 2023).5 Illustrative potential Iris
Energy hashrate if Childress is fully built-out to 600MW (i.e.
760MW of Company aggregate power capacity). Assumes purchase of
Bitmain S19 XP miners. Additional miners have not yet been
purchased and the Company will continue to monitor the market for
funding and purchase opportunities. Hashrate figures may change
depending on miner procurement selection. There can be no assurance
that Iris Energy will be able to procure additional miners on the
anticipated schedule or at all, or on terms that are favorable to
Iris Energy.6 Reflects average all-in power price achieved at
Childress between May 2023 and August 2023 (based on monthly
electricity invoices received as well as internal estimates). Note,
the power price at Childress in September 2023 was ~1.8c/kWh (based
on internal estimates). Excludes April 2023 as this represented a
partial period (reflecting initial ramp-up in operations). Excludes
costs of purchasing RECs. Includes basis costs, ERCOT, retail and
network fees, net of estimated power credits. There is no guarantee
similar power credits will be achieved at Childress in the future
(or at all). Includes internally estimated value of current
enrolment in ERCOT’s Emergency Response Service program (“ERS”) for
the period between June 2023 and August 2023 (based on actual
observed ERS clearing prices during the period). Childress has not
yet received any ERS benefit and there is no guarantee it will
receive any benefit (e.g. due to unsuccessful participation) and
ERCOT has not confirmed the value of the ERS benefit under the
current enrolment (if any). The actual all-in-power price achieved
at Childress may differ materially in the future, including due to
energy market volatility and seasonal factors (noting the site has
only operated since April 2023).7 Illustrative electricity cost per
Bitcoin at Childress based on 2.0c/kWh and 1.4c/kWh respectively,
assuming 388 EH/s difficulty-implied global hashrate, 6.25 BTC
block reward per block and 0.20 BTC transaction fees per block.8 As
of June 30, 2023.9 In addition to the $300m ATM, the shelf filing
includes capacity for up to an additional $200m of other securities
(e.g. debt, hybrid and/or equity). Sales of any securities under
the ATM or otherwise are subject to market conditions and there are
no assurances all or any portion of such securities will be sold.10
The Company’s Canal Flats, Mackenzie and Prince George sites have
been powered by 100% renewable energy since inception of which
approximately 98% is directly from renewable energy sources;
approximately 2% is from the purchase of RECs. The Company’s
Childress site has been powered by 100% renewable energy since
inception via the purchase of RECs.11 Comprises actual power usage
for Canal Flats, Mackenzie, Prince George and Childress.12 Reflects
estimated hashrate capacity by site assuming full utilization of
existing available data center capacity with Bitmain S19j Pro
miners, except where otherwise stated.13 Assumes purchase of
Bitmain S19 XP miners. Additional miners have not yet been
purchased and the Company will continue to monitor the market for
funding and purchase opportunities. Hashrate figures may change
depending on miner procurement selection. There can be no assurance
that Iris Energy will be able to procure additional miners on the
anticipated schedule or at all, or on terms that are favorable to
Iris Energy.14 Indicative timing for commencement of delivery
of data centers.
Photos accompanying this announcement are available
athttps://www.globenewswire.com/NewsRoom/AttachmentNg/7d2a3224-df8f-487b-a2b0-40e0081e6dc1https://www.globenewswire.com/NewsRoom/AttachmentNg/9aa3fb83-c8bb-4176-a6ef-96aa91ce6d38https://www.globenewswire.com/NewsRoom/AttachmentNg/41a4d658-8b22-45d8-af99-eda5f71c8cdahttps://www.globenewswire.com/NewsRoom/AttachmentNg/f403f541-9090-4b95-a22c-8f0807c66df5
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